KRS 304.37-535: Capital stock.

(1) The majority of the voting shares of the capital stock of the reorganized insurance

company, which is required by KRS 304.37 -505 to be at all times owned by a

mutual insurance holding company, shall not be conveyed, transferred, assigned,

pledged, subjecte d to a security interest or lien, encumbered, or otherwise

hypothecated or alienated by the mutual insurance holding company or intermediate

holding company.

(2) Any conveyance, transfer, assignment, pledge, security interest, lien, encumbrance,

hypothecation, or alienation of, in, or on the majority of the voting shares of the

reorganized insurance company, which is required by KRS 304.37 -505 to be at all

times owned by a mutual insurance holding company, is in violation of KRS

304.37-505, and shall be voi d in inverse chronological order of the date of the

conveyance, transfer, assignment, pledge, security interest, lien, encumbrance,

hypothecation, or alienation, as to the shares necessary to constitute a majority of

the voting shares.

(3) The majority of the voting shares of the capital stock of the reorganized insurance

company, which is required by KRS 304.37 -505 to be at all times owned by a

mutual insurance holding company, shall not be subject to execution and levy as

provided in KRS Chapter 426.

(4) The shares of the capital stock of the surviving or new company resulting from a

merger or consolidation of two (2) or more reorganized insurance companies or two

(2) or more intermediate holding companies which were subsidiaries of the same

mutual insuran ce holding company are subject to the same requirements,

restrictions, and limitations as provided in this section to which the shares of the

merging or consolidating reorganized insurance companies or intermediate holding

companies were subject by KRS 304.37-505, prior to the merger or consolidation.